Quarters

INSIGHTS - Cost reduction isn't rocket science (unless you're actually building a spacecraft)

How do you do something the “experts” say can’t be done?

As this Harvard Business Review article points out, the secret to SpaceX‘s success is due in part to the way they apply innovation to something that’s usually overlooked: cost reduction.

Key quote:

“In large companies, the task of cost cutting is invariably incremental and left to finance, which works with individuals or small groups within a specific department, region, or area of the business. On the other hand, the SpaceX approach innovates and transforms by looking at the entire business model instead of the parts. Cuts weren’t just made to the physical rocket itself but to everything surrounding it — overhead, support services, development timeframe, and more. With small teams and far lower overhead, SpaceX was able to go from incorporation to first space flight in six years.”

To read the rest of the article, click here.

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